Home care provider seeks rescue plan after financial pressures
Allied Healthcare has cited a “highly challenging environment” as the reason for having to pursue a company voluntary agreement.
Financial pressures have forced one of the country’s biggest private home care providers to seek a rescue plan.
Allied Healthcare cited a “highly challenging environment” as the business, which cares for 13,500 patients annually, confirmed it is pursuing a company voluntary arrangement (CVA).
Struggling companies try to agree a CVA with creditors in a step to revive their fortunes while paying off debts – something the firm said would “not impact on the safe continuity of care”.
In a statement the provider said: “Allied Healthcare has been operating in a highly challenging environment for a sustained period of time, which has placed pressure on the company.
“As a result of these challenges, Allied Healthcare has taken the decision to pursue a CVA, as part of a prospective business plan that will ensure safe continuity of care across our UK-wide operations, place the company on a sustainable long-term footing, and maximise repayments to creditors.”
With 83 branches across the country, 8,700 employees and 150 local authority and other contracts, Allied Healthcare said there will be no redundancies or closures as a result of the CVA implementation.
The provider offers a range of services including end-of-life care, as well as home care visits for the elderly and those recovering from injury, or individuals with learning disabilities.
Allied said in the statement that it “remains business as usual” for employees and customers.